NFP sustainability: why doing good

work is no longer good enough!

Good Beginnings – Innovation Forum

David CrosbieCommunity Council for Australia

April 2014

Community Council for Australia•independent, non-political member-based organisation

•dedicated to building flourishing communities primarily by enhancing the extraordinary work and effort undertaken within the not-for-profit sector in Australia

•seeks to change the way governments, communities and the not-for-profit sector relate to one another

•this includes establishing a regulatory environment that works for community organisations - not against them

CCA Board•Benevolent Society – Anne Hollonds (Director)

•Drug Arm Australia – Dennis Young (Director)

•Good Beginnings Australia – Jayne Meyer Tucker (Director)

•HammondCare – Stephen Judd (Director)

•Lifeline – Jane Hayden

•Mission Australia – Toby Hall (Director)

•Musica Viva Australia – Mary Jo Capps (Director)

•RSPCA Australia – Heather Neil (Director)

•The Big Issue – Steven Persson (Director)

•The Smith Family – Lisa O’Brien (Director)

•Wesley Mission – Keith Garner (Director)

•World Vision Australia – Tim Costello (Chair)

CCA current work

1. ACNC s m p

2. Charity definition s m p

3. Govt funding uncertainty m p

4. Financial System Inquiry s

5. Centre of Excellence s p

6. Commission of Audit s

s = submission

m = media

p = parliamentary hearing or representations

CCA current work (cont)7. PMs Community Business

Partnership s p8. Better Targeting of Tax

Concessions - UBIT s m p

9. In Australia s p

10. Federal Budget s m p

11. Charitable Trusts s m p12. Act on reports – PC,

NFPTCWG, CAMAC, etc.

s = submission

m = media

p = parliamentary hearing or representations

NFP trends in Australia

• growth in income over last 7 years consistently around 5%

• employing around 1 million Australians

• total income around $100 billion

• 30% government funded

• 30% service provision (not govt.)

• 30% philanthropy and fund raising

government trends• demand for services increasing while GST and

stamp duty income stalling• increasingly seeking to leverage investment in

social issues • Social Investment Bonds (NSW)• Social Development Enterprise Investment Funds• taking success to scale• place based, sustainable, outcome driven, ‘return

on investment’ approaches increasing

values

values

strength of NFPs = values

dignity respect courage pride

meaning community opportunity

change honesty

care love

hope responsibility

loss of values in NFPs?• sales organisations competing for funding• lobbyists seeking government money• profit(surplus) making entities driven by bottom line

• semi-skilled managers of other people’s programs

they have contracted to deliver

• disconnected from their communities• disconnected from their clients• outcome blind feel good stand and deliver services

moving ourselves forward?

critical issuesCCA consultations about the future of the sector have highlighted five critical issues:

1.Changing the way we invest in the sector

2.Access to capital

3.Measurement

4.Collaboration / mergers

5.Capacity – leadership, staffing, etc.

the need to challenge

• we have a responsibility, a professional responsibility, a responsibility to our clients, their families, our peers, our organisations, our community

• accepting this responsibility means striving to fully achieve our purpose rather than accepting imposed limitations and what we often know to be inadequate responses to our clients and our community

• accepting this responsibility means measuring and validating your experiences, the experiences of your clients, their families, their community, your organisation

purpose and values• We need to sway and dance with the winds of change, but

not let go of the purpose or the values that make us strong and effective

• the most important struggle is to:

1. retain a commitment to purpose and the fundamental values of human experience, e.g. hope, community, and meaningful relationships

2. strengthen your clients, yourself and your organisation = measure and share how you achieve your purpose = be valued

3. BE AN ADVOCATE / SUPPORT ADVOCACY

Community Council for Australia

www.communitycouncil.com.au

Twitter: @ComCouncil, @DavidCrosbie2

David Crosbiedavidc@communitycouncil.com.au